Ainsworth Game Technology’s FY25 results reveal a mixed bag: a 9% dip in underlying profit to $21.1 million, a hefty $43.1 million goodwill impairment tied to North America, and a strategic pivot with a new acting CEO. Strong Asia Pacific growth and new product launches contrast with margin pressures and a shrinking cash position.
- Underlying profit before tax falls 9% to $21.1 million
- Goodwill impairment of $43.1 million hits North America CGU
- Revenue rises 10% to $290.8 million driven by Asia Pacific and Americas
- Margins compress due to tariffs and product mix changes
- Acting CEO Ryan Comstock appointed following leadership change
Profit Slump and Impairment Shake North America Segment
Ainsworth Game Technology Limited (ASX:AGI) posted an underlying profit before tax of $21.1 million for the year ended 31 December 2025, down 9% from $23.2 million in 2024. This decline masks a turbulent year marked by a significant $43.1 million goodwill impairment related to the North America cash generating unit (CGU), reflecting the segment’s underperformance and revised growth assumptions. The impairment was a non-cash charge but nonetheless dragged statutory profit into a $19.2 million net loss.
The North America segment remains the company’s largest, contributing $151.3 million in revenue or 52% of group sales, a modest 3% increase on the prior year. However, segment profit fell 4% to $65.5 million, squeezed by lower gross margins and new tariffs on imported goods. Participation and lease revenues also declined slightly, impacted by a reduced installed base and lower average daily fees.
Despite these challenges, Ainsworth’s Historical Horse Racing (HHR) system continues to expand, with over 11,000 terminals connected across six US states, generating recurring revenue streams that partially offset headwinds. The company’s market share in the Class 3 market remains steady at approximately 8%, with 27,000 units deployed.
Asia Pacific Growth Fueled by A-Star Raptor™ Launch
The Asia Pacific region delivered a standout performance, with revenue jumping 52% to $65 million, driven by the February 2025 launch of the A-Star Raptor™ dual screen cabinet. This new hardware, coupled with a revitalised game portfolio including top performers like Year of the Snake™ and Nugget Hunter™, helped lift segment profit from $2.7 million to $13.6 million. The company sold 1,914 units in the region, a 36% increase, while average selling prices rose 4%.
Positive operator feedback highlighted the Raptor’s sleek design, reliability, and player appeal, positioning it as a compelling product in a competitive market. The company plans a full rollout of the Raptor Dual Screen cabinet in 2026, targeting high denomination core brands such as Eagle Bucks™ and The Enforcer™ in North America.
Latin America and Europe Face Mixed Conditions
Revenue from Latin America and Europe edged up 4% to $69.3 million, supported by higher sales of A-Star Raptor™ cabinets at improved average selling prices. However, segment profit fell sharply by $8.9 million to $18.6 million, hurt by a decline in gross profit margins due to product mix and import restrictions in Mexico. The installed base in gaming operations decreased by 10%, partly due to conversions to sales and regulatory changes.
In Europe, selective expansion in regulated markets like France and Spain showed promise, validating Ainsworth’s strategy of localised content and regulatory-aligned partnerships. The San Fa™ game series has been a key success in these markets, contributing to Ainsworth’s position as the top supplier under 500 units in the Eilers EMEA 2025 performance report.
Online Segment Struggles Amid Contract Termination
The online gaming segment posted a 32% revenue decline to $5.2 million, impacted by the termination of the exclusivity contract with GAN in March 2024. This underperformance led to a $2.1 million impairment charge. Ainsworth is pursuing direct operator partnerships to rebuild this segment, focusing on leveraging land-based intellectual property to strengthen brand recognition in regulated real-money gaming markets.
Leadership Changes and Financial Position
Following the departure of former CEO Harald Neumann in October 2025, Ryan Comstock was appointed Acting CEO. Comstock, previously COO, has focused on stabilising the North American sales organisation and driving operational execution. The Board is reviewing a permanent CEO appointment, mindful of regulatory approvals.
Financially, Ainsworth reported total revenue of $290.8 million, up 10% year-on-year, with underlying EBITDA steady at $48.0 million. Margins compressed to 16.5% from 18.3% due to gross margin pressures and tariffs. The company’s cash position net of borrowings swung to a negative $11.8 million from a positive $9.7 million, reflecting increased drawdowns of $23.5 million from its US$75 million secured loan facility with Western Alliance Bancorporation.
The company maintains a strong balance sheet with net assets of $328.7 million. Operating cash flow was negative $11.2 million, weighed down by working capital requirements and transaction costs related to a terminated scheme of arrangement and takeover offers. The Board continues to prioritise liquidity to support product development, talent retention, and risk mitigation amid cost pressures.
Sustainability and Governance Initiatives
Ainsworth’s 2025 Annual Report also highlights its sustainability program structured around five pillars: People, Environment and Energy, Responsible Gambling, Regulatory Compliance, and Ethical Sourcing. The company emphasises compliance with gaming regulations, employee wellbeing, environmental responsibility, and ethical supply chain management.
Governance remains a focus amid ongoing shareholder activism, with recent takeover bid developments and governance pushes from significant shareholders adding pressure for strategic clarity and dividend policy reform.
What to Watch Next
The coming year will test Ainsworth’s ability to translate its renewed product pipeline and organisational changes into margin recovery and consistent growth. Key indicators include the North America CGU’s performance post-impairment, the rollout and market reception of the A-Star Raptor™ Dual Screen cabinet, and progress in rebuilding the online segment through direct partnerships. Meanwhile, macroeconomic and regulatory conditions in Latin America, especially Mexico, remain a wildcard. Investors will also be watching how the company navigates shareholder activism and potential governance reforms.
Bottom Line?
Ainsworth’s FY25 results reveal resilience amid headwinds, but the North America goodwill impairment and margin squeeze underscore the challenge ahead in restoring profitability and operational momentum.
Questions in the middle?
- Will the North America CGU recover margins and growth to justify the goodwill write-down?
- How quickly can the A-Star Raptor™ Dual Screen cabinet scale across key markets in 2026?
- Can Ainsworth rebuild its online gaming revenues through new direct operator partnerships?